Russia will delay construction of a proposed gas pipeline project linking the country with China due to competition from other gas sources in the Chinese market, the official Xinhua news agency reported on Tuesday, citing Russian media.
The gas pipeline project, which was designed to run through the western part of the Russian-Chinese border, was excluded from Russia's recently released blueprint for gas industry development through 2030, the report said.
The blueprint explains that pipeline gas from Russia will face intense competition in the Chinese market from liquefied natural gas imports and pipeline gas from Turkmenistan.
However, the blueprint also said the possibility of Russian and China reaching agreements on construction of the pipeline still exists.
A protocol regarding the gas pipeline project, which would transport gas supplies from West-Siberian gas fields to China's northwestern Xinjiang-Uighur Autonomous Region, was signed between Gazprom and China National Petroleum Corp. in March 2006.
China, which is facing significant shortages in domestic gas supplies, has been on a buying spree for spot LNG cargos in addition to its thirst for signing long-term contracts.
A 7000-kilometer gas pipeline linking Turkmenistan and China is to be completed by the end of 2009, capable of transporting 40 billion cubic meters of gas a year.